• Apple Raises 250 Billion Yen through its First-Ever Japanese Bond Offering

    In a recent filing with the US Securities and Exchange Commission, the Cupertino California company revealed that it has raised 250 billion yen through its first-ever Japanese bond-offering. The 250 billion yen is equivalent to $2 billion USD. These bonds mature on June 10, 2020 and are managed by Goldman Sachs International and Mitsubishi UFJ Securities International. It should be noted that Apple’s bonds are rated AA1 by Moody’s Investors Service and AA+ by Standard & Poor’s Ratings Services.

    Bond offerings from Apple often tend to be a hot item for investors as the company is one of most valuable in the world. At the end of last quarter, it had a massive $194 million in cash. The Cupertino California company’s first yen-denominated bond seeks to take advantage of Japan’s extremely low interest rates where the company borrows to fund its capital return program for investors, which includes share buybacks and quarterly dividend.

    The Cupertino California company’s current plan seeks for it to return $200 billion to shareholders by end of March 2017. The $2 billion Japanese bond is one of the largest in the nation’s history but Apple’s offering still fell short of the $2.2 billion US bond issued by Citigroup back in 2007. Just last November, Apple also offered its first-ever euro-denominated bond also taking advantage of extremely low interest rates at the time as well. The iPhone maker ended up raising $3.5 billion from that bond offering.

    Source: SEC via AppleInsider
    This article was originally published in forum thread: Apple Raises 250 Billion Yen through its First-Ever Japanese Bond Offering started by Akshay Masand View original post
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